Nouriel Roubini wants a nickname-change.
Compared to his outlook of a year ago, he’s downright sunny. So now he would like to be called Dr. Realist.
Somehow that doesn’t have quite the same ring to it.
Anyway, Nouriel’s also still sounding gloomy, but only because the market has gone to the moon:
Kelly Evans, WSJ: “Some of [the rally] is fundamental,” [Dr. Doom] said. “We avoided Armageddon, there is a light at the end of the tunnel, and risk aversion is lower.”
“But it has occurred so fast, so soon, in my view that it’s diverging from the underlying economic fundamentals,” he said. “Markets today are pricing in a V-shaped recovery and they have to start pricing in a U-shaped recovery, so the fourth quarter or first quarter could see a correction.”
Mr. Roubini also denied that he is a “permabear” and joked that his nickname should be “Dr. Realist” rather than “Dr. Doom,” given his warnings about the U.S. housing market prior to its collapse…
“There is froth in markets — a significant amount of froth,” he said, but “the recovery is going to be so weak, there is no way the Fed can start raising interest rates anytime soon.” The U.S. unemployment rate, for example, “will certainly be well above 10%” for some time since “many of these lost jobs are gone forever,” he said.